Value investing Techniques

Below is a list of what you should look at a company when analysing the stock:

• Does the company sell products that are likely to endure ?
• Is the business of the company easy to understand ?
• Does the company invest in and operate businesses within its area of expertise?
• Does the company have the ability to maintain or increase profitability ?
• Does the company have control on its debt. ie Is it overexposed to debt ?
• Does the company show consistently high return on equity and capital?
• Have the earnings per share (EPS) and sales per share of the company shown consistent growth ?
• Is the EPS growth above Market Averages ?
• Has the company been buying back stock to increase shareholder value when the price is low ?
• Has management wisely used retained earnigns to increase the rate of return (ROR) to shareholders?
• Looking at the chart is the Share rising ?
• Is the share Priced realistically based on PE, PEG and Dividend Yeilds?

If the company gets a tick in every column you might be onto agood share ...

Good Luck investing...